Buying in Battery Park City and trying to pin down your closing costs? Two line items can shift your cash to close more than anything else: New York’s mansion tax and the mortgage recording tax. It is normal to have questions here. These rules are specific, they change over time, and they affect condos and co-ops differently.
In this guide, you’ll learn what triggers each tax, how they are calculated for BPC purchases, and a simple way to estimate them before you bid. You will also get trusted sources to confirm the latest rates and a quick checklist to keep your math on track. Let’s dive in.
Mansion tax basics in BPC
The mansion tax is a one-time tax paid by the buyer at closing when the purchase price meets or exceeds New York’s threshold. It applies across Manhattan, including Battery Park City, and is separate from any city or state transfer taxes the seller might pay.
It is assessed on the contract price. Your attorney or settlement agent typically collects and remits it at closing along with other transfer filings. Because the tax is enforced at closing, the numbers must be accurate before you sign your final paperwork.
When the tax applies
- The mansion tax is based on the residential sale price shown in your contract and closing documents.
- Neighborhood does not change taxability. A condo or a co-op in BPC is treated the same for mansion tax purposes if the price falls within the taxable range.
- Credits, concessions, or complex pricing structures can affect reporting. If your deal involves seller credits, staged payments, or unusual terms, ask your attorney to confirm what counts as taxable consideration.
How to calculate your rate
New York uses a progressive rate schedule. Your mansion tax equals the sale price multiplied by the rate that corresponds to your bracket. To see the current schedule and any updates, review the New York State Department of Taxation and Finance guidance on the mansion tax. You can find the official rates under Additional tax on the conveyance of residential real property.
- Check the latest schedule and definitions on the state site at the New York State Department of Taxation and Finance mansion tax page.
- Your attorney or title company will compute the exact amount on your closing statement.
For official details and the current rate table, see the New York State Department of Taxation and Finance overview of the mansion tax. You can review the latest brackets and FAQs there before you finalize numbers.
According to the New York State Department of Taxation and Finance’s mansion tax guidance, the buyer pays this tax at closing when the contract price meets the applicable threshold and rate.
Sample mansion tax math
- Illustrative example: You purchase a BPC condo for $2,250,000. If the rate for your price bracket is 1.25 percent, the mansion tax would be $2,250,000 × 1.25 percent = $28,125. Use the current published rates from the state to calculate your exact figure.
Mortgage recording tax 101
The mortgage recording tax is a separate tax collected when a mortgage is recorded against real property. In New York City, it includes a state portion and a city portion. The borrower typically pays this tax at closing when the mortgage is recorded.
The key distinction in Manhattan is property type. Condos and co-ops are structured differently, and that changes how the mortgage recording tax applies.
Condo purchases and mortgage tax
- A condo is real property transferred by deed. Your lender’s lien is recorded as a mortgage in the county land records.
- Recording a mortgage against a condo triggers mortgage recording tax on the mortgage amount.
- Your lender, attorney, or title company will compute the tax using the combined New York State and New York City rates in effect on your closing date.
Co-op purchases and typical exceptions
- A co-op purchase is a purchase of shares and a proprietary lease, not a deed to real property.
- The lender typically secures the loan by pledging your co-op shares and assigning the proprietary lease rather than recording a real property mortgage.
- Because there is usually no recorded real property mortgage, most standard co-op loans do not incur mortgage recording tax. Always verify with your lender and attorney, since unusual structures or refinancing can change the analysis.
Where to confirm NYC mortgage tax rules
The City maintains the official instructions, rate categories, and filing guidance. Review the current rules on the NYC Department of Finance mortgage recording tax page before you finalize numbers with your lender.
Sample mortgage tax math
- Condo example: Contract price $1,750,000, mortgage $1,400,000. Mortgage recording tax equals the mortgage amount multiplied by the current combined NYC plus NYS rate for your loan type. Your lender can provide the precise figure.
- Co-op example: Contract price $1,750,000, loan $1,400,000. In a typical co-op financing, mortgage recording tax is not charged because no real property mortgage is recorded. Confirm with your lender and attorney to be sure.
Estimate your cash to close
Use this quick checklist to build a practical, pre-bid estimate. Add buffers so you are not surprised at contract.
Quick pre-bid checklist
- Identify property type. Confirm whether the home is a condo or a co-op in Battery Park City. This determines mortgage tax treatment.
- Set your target price. Use your offer price or the list price as a placeholder to estimate the mansion tax.
- Estimate your loan amount. Use the pre-approval or the loan-to-value target your lender gave you to compute the mortgage tax for condos.
- Pull current rate tables. Get the latest mansion tax brackets from New York State and the current NYC plus NYS mortgage recording tax rates from the NYC Department of Finance.
- Add other closing costs. Include attorney fees, title insurance and recording fees for condos, lender charges, prepaid tax or common charge adjustments, co-op application fees, any flip tax, and move-in deposits.
- Build a buffer. Round up for items that can shift, like lender credits, sponsor fees on new developments, or repairs that change closing adjustments.
Items that can move the number
- Seller credits or concessions. These can affect your net cash to close, but your mansion tax is based on the reported contract price unless the structure changes the taxable consideration. Confirm with your attorney.
- New development terms. Sponsors sometimes offer incentives. The mansion tax still applies to the buyer if your contract price is within a taxable bracket unless the agreement explicitly reallocates it.
- Building-specific fees. Co-ops often have application charges or a flip tax. Some buildings require reserve contributions or move-in deposits. Review the building’s documents before you offer.
Tools and sources you can trust
You should always verify calculations against official guidance or your closing team’s documents.
- Mansion tax schedule and definitions. Review the New York State Department of Taxation and Finance’s mansion tax page for current brackets and rules.
- Mortgage recording tax in NYC. Confirm the latest combined rates and filing details on the NYC Department of Finance mortgage recording tax page.
- Lender estimate. Ask your lender for a Loan Estimate that includes the expected mortgage recording tax for a condo purchase.
- Attorney or title pro forma. Your closing attorney or title company can prepare a pro forma showing mansion tax, mortgage tax if applicable, and all other fees.
Pro tips for BPC buyers
- Focus on one-time taxes vs recurring costs. Mansion tax and mortgage recording tax are one-time closing taxes. They are separate from ongoing property taxes, condo common charges, or co-op maintenance.
- Condo vs co-op matters. Condo mortgages typically incur mortgage recording tax. Co-op loans usually do not. That single difference can materially change your cash to close.
- Confirm the exact price you use in your math. The mansion tax is tied to the contract price. Do your estimates at several price points so you know how counters could change the number.
- Get advice early. Share your estimate with your lender and attorney before you submit an offer so your strategy aligns with true costs.
Next steps
If you are weighing condo versus co-op in Battery Park City, build your estimate using the steps above, then confirm with your lender and attorney using the official links in this guide. That way, you can bid with confidence and negotiate with clear numbers.
Have questions about a specific listing or want a tailored estimate before you offer? Reach out to Unknown Company to walk through your scenario and next steps.
FAQs
What is the mansion tax for Battery Park City purchases?
- It is a one-time buyer-paid tax due at closing when your residential contract price meets or exceeds New York’s threshold. Rates are progressive by price bracket and apply citywide, including BPC.
Who usually pays the mansion tax in Manhattan?
- By statute the buyer pays. Parties can negotiate differently in a contract, but the standard practice is that the buyer pays the mansion tax at closing.
Does the mansion tax apply to co-ops in BPC?
- Yes. Co-ops are subject to the same mansion tax rules as condos when the sale price is within a taxable bracket, since the trigger is the contract price, not the ownership form.
What is the mortgage recording tax and when does it apply?
- It is a tax on the recording of a real property mortgage. In NYC it has state and city components. It typically applies to condo mortgages because they are recorded against real property.
Do co-op buyers pay mortgage recording tax in Manhattan?
- In most standard co-op loans, no. The loan is secured by a pledge of shares and a lease assignment rather than a recorded real property mortgage, so the mortgage recording tax is generally not triggered. Always verify with your lender and attorney.
How can I estimate closing taxes before I bid?
- Identify property type, set your target price, estimate your loan amount, then apply the current mansion tax brackets and the NYC plus NYS mortgage recording tax rates. Confirm figures using the official state and city pages and your lender’s Loan Estimate.
